Malaysian palm oil futures are on track for a fourth straight weekly decline, pressured by expectations of higher end-of-October stockpiles and a recent drop in crude oil prices.

The benchmark January palm oil contract on the Bursa Malaysia Derivatives Exchange fell 39 ringgit, or 0.94%, to 4,110 ringgit ($973.01) per metric ton by midday on Friday. The contract has declined 2.31% over the week so far.

“Palm stays under pressure due to expectations of higher end stocks, lower crude oil, and biodiesel feasibility,” said Sandeep Singh, director of The Farm Trade in Kuala Lumpur. He noted that with palm oil currently at a discount to soyoil and technical support around 4,080 ringgit, some buying is expected at that level.

Malaysia’s palm oil inventories are projected to have reached a two-year high in October, with production hitting its strongest level in seven years, surpassing export demand. Stockpiles are estimated to have risen 3.5% month-on-month to 2.44 million metric tons, the highest since October 2023. The Malaysian Palm Oil Board (MPOB) will release official monthly data on November 10.

Crude oil prices inched up on Friday after three days of declines due to concerns over excess supply and slowing U.S. demand. Weaker crude futures make palm oil less attractive as a biodiesel feedstock.

Other vegetable oils also showed losses: Dalian’s soyoil contract fell 0.42%, its palm oil contract lost 0.21%, and Chicago Board of Trade soyoil shed 0.34%.

Palm oil prices often track rival edible oils, as they compete globally for market share. According to Reuters technical analyst Wang Tao, palm oil is expected to test support at 4,124 ringgit per ton, with a break below potentially triggering a drop to the 4,080–4,107 ringgit range.